There Could Be Another IPO In Dell Technologies’ Future

Words IPO (Initial public offering) with the trading data on the background.
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There could be another IPO in Dell Technologies' (ticker: DVMT) future.

Billionaire Michael Dell is mulling taking the company he founded public again to raise cash and reduce its onerous debt – four years after he took it private, according to a report in Bloomberg last night.

An initial public offering would not only boost a flagging market for tech IPOs but undo its leveraged buyout with Silver Lake in 2013. Dell’s board is scheduled to meet this month to consider strategic options that include an IPO, Bloomberg said, citing people familiar with the matter.

Dell’s decision has much to do with its $67 billion deal in 2016 to acquire storage company EMC and its majority stake in data-software specialist VMware (VMW). The mega-deal took on massive debt, which Bloomberg calculates at about $46 billion. A Dell IPO would ostensibly raise cash to pay off some debt and enable the company to further expand into hardware and software for corporate data centers.

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